Hp Discovers Marketing
HEWLETT-PACKARD discovers Marketing
Summary:
H-P, founded by two Stanford graduates in 1945, has grown to become one of the top computer related companies in the world. The initial product portfolio consisted of a device for measuring sound and a line of electronic testing devices.
In 1968, HP came up with its first minicomputer which found immediate industrial application and in 1972 it introduced a handheld calculator which sold exceedingly well, despite a higher price. However, competition forced HP to reduce its price later. All these products were not developed for the mass market but employed two different methods to determine products and markets – ask co-workers what was needed or build a machine for one customer and market it to others.
In 1984, HP launched three new products – a compact computer called The Portable and two printers named LaserJet and ThinkJet – for the mass market. This move indicated that the company was becoming more ‘marketing-driven’. IBM being the market leader at that time, the earlier H-P 150 failed because of not being IBM-compatible. Another reason for this failure corresponded to the lesser amounts of gross margins that retailers and chains could get in contrast to that gained by dealing in other personal computers. To overcome past failures, the new H-P Portable was made to be IBM-compatible. Dealers were now offered better terms of payment and larger bulk discounts, which resulted in improved dealer relations leading to a growth in their number in the supply chain.
Also, in the past H-P had two separate sales forces– one selling testing instruments and the other marketing computers. A sales force reorganization created a single sales force that now sells all H-P products rather than isolated machines. Thus, with a change in their marketing strategies H-
P subsequently evolved to become the market leader.
Questions and Answers: 1. Explain whether H-P has adopted the marketing concept. Tell us what in your opinion
Summary:
H-P, founded by two Stanford graduates in 1945, has grown to become one of the top computer related companies in the world. The initial product portfolio consisted of a device for measuring sound and a line of electronic testing devices.
In 1968, HP came up with its first minicomputer which found immediate industrial application and in 1972 it introduced a handheld calculator which sold exceedingly well, despite a higher price. However, competition forced HP to reduce its price later. All these products were not developed for the mass market but employed two different methods to determine products and markets – ask co-workers what was needed or build a machine for one customer and market it to others.
In 1984, HP launched three new products – a compact computer called The Portable and two printers named LaserJet and ThinkJet – for the mass market. This move indicated that the company was becoming more ‘marketing-driven’. IBM being the market leader at that time, the earlier H-P 150 failed because of not being IBM-compatible. Another reason for this failure corresponded to the lesser amounts of gross margins that retailers and chains could get in contrast to that gained by dealing in other personal computers. To overcome past failures, the new H-P Portable was made to be IBM-compatible. Dealers were now offered better terms of payment and larger bulk discounts, which resulted in improved dealer relations leading to a growth in their number in the supply chain.
Also, in the past H-P had two separate sales forces– one selling testing instruments and the other marketing computers. A sales force reorganization created a single sales force that now sells all H-P products rather than isolated machines. Thus, with a change in their marketing strategies H-
P subsequently evolved to become the market leader.
Questions and Answers: 1. Explain whether H-P has adopted the marketing concept. Tell us what in your opinion